Japanese mobile operator KDDI is considering M&A deals in Asia, its new president Takashi Tanaka reportedly said during a press conference. The move would be aimed at deploying consumer-oriented services in neighbouring countries, he said.
“Turning our…
Japanese mobile operator KDDI is considering M&A deals in Asia, its new president Takashi Tanaka reportedly said during a press conference. The move would be aimed at deploying consumer-oriented services in neighbouring countries, he said.
“Turning our attention overseas, there are many emerging nations where economic growth is remarkable but dissemination of the internet is lagging. On the world stage, KDDI will develop communications-related business and open new markets in accordance with each nation’s culture and socioeconomic conditions,” he said in a message posted on the company’s website.
Tanaka officially became president on 1 December, replacing Tadashi Onodera, who is staying on as chairman. Tanaka was previously senior vice president at KDDI. According to reports, the company replaced Onodera as it steps up its battle in the very competitive Japanese market.
During the press conference, Tanaka reportedly said that KDDI was already in talks with potential overseas partners. He added that the company’s cash flow, which will help determine the M&A budget, was “pretty decent”.
KDDI said, later October, that it was buying back as much as 5.16% of its outstanding shares for about US$1.2bn, following the close of trading on 22 October.
The repurchase is aimed at implementing “flexible capital policies in response to the change in the business environment and to provide shareholders return,” a statement read.
In a similar announcement, Japan’s incumbent Nippon Telegraph & Telephone Corporation (NTT) recently said it was looking to substantially increase its profits from overseas operations.
The company is targeting more than US$500m in operating profits from foreign businesses by fiscal year-end 31 March 2013, according to its CFO Hiroo Unoura as quoted by reports.
Unoura was quoted saying that the company is eyeing other deals overseas, hinting that South America was likely of interest.